Did We Miss Something?, page-16

Thermal prices certainly are indeed depressing looking for the coal industry at the moment SP3; there a number of temporary closure occurring at the moment, there certainly is over supply at present , so what the likes of Glencore are doing in an attempt avoid continuing pumping millions of tonnes into a heavily oversupplied market at depressed prices, is temporarily shutting down operations in order for the oversupply to diminish some, Glencore has stated that it's would shut its Australian coal business for three weeks, starting mid-December, shaving about 5 million tonnes of output.

The likes of Glencore have stressed their positive outlook for coal in the medium term, when it tips the supply and demand balance will be restored, they have a number of mines about to commence expansion in QLD early 2015 and a couple of mines already being upgraded / expanded currently in NSW, so yes they are confident in reversal.

Currently doing some work on the Adami project at the moment; it's an absolute monster and in my own personal opinion, thermal would need to be significantly higher that the current figures to be really sure of kicking it off, even the predicted figures of a climb back into the U.S. $80 plus mark medium term don't even make it a compelling project, it would IMO have to climb back into the late 80s early 90s, but saying that the big players are expecting a reversal in thermal pricing; currently some mines are at , nearing or crossed the break even point, hence we have had a couple of shutdowns recently ; this should also start to drain supply, so IMO we have most likely bottomed out on price and supply and demand should reach a state of equilibrium and there after we may see some pressure on supply and reversal on price per tonne.

Coldry is still a bargain for the Indians, even when comparing it to the rock bottom thermal coal prices.

all IMO